Bridgepoint Education Reports Full Year 2012 Results

Bridgepoint Education Reports Full Year 2012 Results
PR Newswire
SAN DIEGO, March 12, 2013
SAN DIEGO, March 12, 2013 /PRNewswire/ --Bridgepoint Education, Inc.
(NYSE:BPI), a provider of postsecondary education services, announced the
results for its fourth quarter and full year ended December 31, 2012.
Highlights for the fourth quarter ended December 31, 2012:
oRevenue decreased to $209.4 million from $221.3 million for the same
period in 2011.
oOperating income decreased to $25.1 million from $35.3 million for the
same period in 2011.
oNet income decreased to $16.0 million from $22.9 million for the same
period in 2011.
oFully diluted earnings per common share decreased to $0.29 from $0.41 for
the same period in 2011.
Highlights for the full year ended December 31, 2012:
oTotal student enrollment decreased to 81,810 from 86,642 at December 31,
2011.
oRevenue increased to $968.2 million from $933.3 million for 2011.
oOperating income decreased to $202.7 million from $273.7 million for 2011.
oNet income was $128.0 million compared with net income of $172.8 million
for 2011.
oFully diluted earnings per common share was $2.29 compared with $3.02 for
2011.
Student Enrollment
Total student enrollment at the Company's academic institutions, Ashford
University and University of the Rockies, was 81,810 at December 31, 2012,
compared with 86,642 students at the end of the fourth quarter of 2011.
Combined new student enrollments for the fourth quarter of 2012 at both of the
Company's academic institutions were approximately 9,260, compared with
combined new student enrollments of approximately 13,500 for the fourth
quarter of 2011.
Financial Results
Effective in the fourth quarter of 2012, the Company made changes in the
presentation of its operating expenses. The Company determined that these
changes would better reflect industry practice and would provide more
meaningful information as well as increased transparency to its operations.
The Company also believes that the reclassification better represents the
operational changes and the business initiatives that have been implemented.
The Company has reclassified prior periods to conform to the new presentation.
Revenue for the fourth quarter of 2012 was $209.4 million, compared with
revenue of $221.3 million for the fourth quarter of 2011. Revenue for the
year ended December 31, 2012, was $968.2 million, compared with revenue of
$933.3 million for the year ended December 31, 2011.
Operating income for the fourth quarter of 2012, was $25.1 million, compared
with $35.3 million for the same period in 2011. Operating income for the year
ended December 31, 2012, was $202.7 million, compared with $273.7 million for
the year ended December 31, 2011.
Net income for the fourth quarter of 2012 was $16.0 million, compared with net
income of $22.9 million for the fourth quarter of 2011. Net income for the
year ended December 31, 2012, was $128.0 million, compared with net income of
$172.8 million for the year ended December 31, 2011.
Fully diluted earnings per common share for the fourth quarter of 2012 was
$0.29 compared with fully diluted earnings per common share of $0.41 for the
fourth quarter of 2011. Fully diluted earnings per common share for the year
ended December 31, 2012, was $2.29, compared with fully diluted earnings per
common share of $3.02 for the year ended December 31, 2011.
The Company's effective tax rate for the year ended December 31, 2012, was
37.9%.
The Company anticipates a 2.75% tuition increase for online students at
Ashford University for courses beginning on or after April 1, 2013.
Balance Sheet and Cash Flow
As of December 31, 2012, the Company had cash, cash equivalents and
investments of $514.7 million, compared with $407.2 million as of December 31,
2011. The Company generated $143.2 million of cash from operating activities
for the year ended December 31, 2012, compared with $220.8 million for the
year ended December 31, 2011.
Earnings Conference Call and Webcast
The Company will host a conference call at 11:30 a.m. ET (8:30 a.m. PT) today
to discuss its latest financial results and recent developments. The dial-in
number for callers in the United States and Canada is (800) 347-6311 and for
international callers is (719) 457-2086. The access code for all callers is
7577415. A live webcast will also be available on the Company's website at
http://bridgepointeducation.com/investor_relations.htm.
A replay of the call will be available via telephone through March 19, 2013.
To access the replay, dial (888) 203-1112 in the United States or Canada and
(719) 457-0820 for international callers; then enter the access code 7577415.
About Bridgepoint Education
Bridgepoint Education, Inc. (NYSE:BPI) improves the way individuals learn. By
harnessing creativity, knowledge and proprietary technologies, such as
Constellation, Thuze, and Waypoint Outcomes, Bridgepoint Education has
re-engineered the modern student experience with innovative solutions that
advance learning. Its academic institutions – Ashford University and
University of the Rockies – embody the contemporary college experience.
Ashford University offers associate's, bachelor's and master's degree programs
while University of the Rockies offers master's and doctoral degree programs.
Both provide progressive online platforms, as well as traditional campuses
located in Clinton, Iowa (Ashford University), and Colorado Springs, Colorado
(University of the Rockies).
For more information about Bridgepoint Education, call Paul Goodson, Associate
Vice President of Investor Relations at (866) 475-0317 x2271.
Forward-Looking Statements
This news release may contain forward-looking statements including, without
limitation, statements regarding the Company's 2013 outlook and related
commentary. These statements involve risks and uncertainties, and the
Company's actual performance may differ materially from those expressed in or
suggested by such statements. Risks and uncertainties include, without
limitation:
ofailure to comply with the extensive regulatory framework applicable to
the Company and its institutions, including Title IV of the Higher
Education Act and its regulations, state laws and regulatory requirements,
and accrediting agency requirements;
oadverse administrative, regulatory or legislative changes affecting the
Company's institutions;
othe imposition of fines or other corrective measures against the Company's
institutions;
ocompetition in the postsecondary education market and its potential impact
on the Company's market share and recruiting costs; and
oreputational and other risks related to potential compliance audits,
regulatory actions, negative publicity or service disruptions.
More information on potential factors that could affect the Company's
performance is included from time to time in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's periodic reports filed with the SEC,
including the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2012, to be filed with the SEC. Forward-looking statements are
made on the basis of management's views and assumptions regarding future
events and business performance as of the time the statements are made, and
the Company assumes no obligation to update any forward-looking statements or
information, which speak as of their respective dates, except as required by
law.
Contact: Paul Goodson, Associate Vice President, Investor Relations
(866) 475-0317 x2271
investorrelations@bridgepointeducation.com
BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Income
(In thousands, except per share amounts)
Year Ended December 31,
2012 2011
Revenue $ 968,171 $ 933,349
Costs and expenses:
Instructional costs and services 355,273 303,860
Admissions advisory and marketing 339,209 297,619
General and administrative 70,975 58,123
Total costs and expenses 765,457 659,602
Operating income 202,714 273,747
Other income, net 3,370 2,768
Income before income taxes 206,084 276,515
Income tax expense 78,121 103,751
Net income $ 127,963 $ 172,764
Earnings per common share:
Basic $ 2.42 $ 3.30
Diluted 2.29 3.02
Weighted average number of common shares outstanding
used in computing earnings per common share:
Basic 52,947 52,291
Diluted 55,946 57,133
BRIDGEPOINT EDUCATION, INC.
Consolidated Balance Sheets
(In thousands, except par value)
As of December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 255,965 $ 133,921
Restricted cash — 25
Investments 136,967 153,779
Accounts receivable, net 75,177 62,156
Deferred income taxes 8,228 5,429
Prepaid expenses and other current assets 19,810 17,199
Total current assets 496,147 372,509
Property and equipment, net 95,966 89,667
Investments 121,738 119,507
Student loans receivable, net 15,143 9,255
Goodwill and intangibles, net 10,739 7,037
Deferred income taxes 13,266 11,200
Other long-term assets 2,330 4,461
Total assets $ 755,329 $ 613,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,588 $ 8,961
Accrued liabilities 44,640 40,205
Deferred revenue and student deposits 175,057 185,446
Total current liabilities 224,285 234,612
Rent liability 25,173 16,595
Other long-term liabilities 9,759 8,781
Total liabilities 259,217 259,988
Total stockholders' equity 496,112 353,648
Total liabilities and stockholders' equity $ 755,329 $ 613,636
BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2012 2011
Cash flows from operating activities
Net income $ 127,963 $ 172,764
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for bad debts 66,446 58,511
Depreciation and amortization 17,424 12,743
Amortization of premium/discount 6,805 3,969
Deferred income taxes (7,264) 6,606
Stock-based compensation 13,729 10,595
Excess tax benefit of option exercises (10,058) (19,096)
Loss on disposal of fixed assets 1,153 13
Changes in operating assets and liabilities:
Accounts receivable (81,577) (60,817)
Prepaid expenses and other current assets (1,056) (2,104)
Student loans receivable (3,778) (7,947)
Other long-term assets 2,131 253
Accounts payable and accrued liabilities 12,100 27,509
Deferred revenue and student deposits (10,389) 11,870
Other liabilities 8,772 5,882
Uncertain tax position 784 57
Net cash provided by operating activities 143,185 220,808
Cash flows from investing activities
Capital expenditures (25,296) (34,492)
Purchases of investments (179,387) (337,084)
Restricted cash 25 —
Capitalized curriculum development costs (5,262) (3,521)
Sales and maturities of investments 186,911 167,049
Net cash used in investing activities (23,009) (208,048)
Cash flows from financing activities
Proceeds from exercise of stock options 2,257 4,889
Tax withholdings related to net issuance of stock (10,418) —
options
Excess tax benefit of option exercises 10,058 19,096
Proceeds from the issuance of stock under employee 1,340 1,330
stock purchase plan
Proceeds from the exercise of warrants 490 106
Tax withholdings related to net issuance of warrants (944) —
Issuance of restricted stock (313) —
Repurchase of common stock (602) (92,778)
Net cash provided by (used in) financing activities 1,868 (67,357)
Net increase (decrease) in cash and cash equivalents 122,044 (54,597)
Cash and cash equivalents at beginning of period 133,921 188,518
Cash and cash equivalents at end of period $ 255,965 $ 133,921
SOURCE Bridgepoint Education, Inc.
Website: http://bridgepointeducation.com